"I'm happy the company has largely maintained consistent sales volume during a challenging second quarter when our largest customer, Haizhong Heating, which represented around 80% of our Shenyang-based revenues, suspended operations of its CWSF boilers. As a result, our Shenyang facility ceased operations in late April 2011. Our business in Tongchuan was also challenged by the emergence of a new competitor. As Haizhong Heating plans to restart its CWSF operations at the end of September, three months later than our original estimation, our production in Shenyang will remain suspended during the third quarter. Although we are encountering some setbacks due to tightening macro policy and increased local competition, the Company remains confident in the prospects of CWSF and will continue to invest in building up our capacity through production line expansions and acquisitions. Our margins might be under pressure for the rest of 2011, but we believe that capacity investment will position Sino Clean Energy favorably in the mid-to-long term."

Due to the extended suspension of CSWF operations of a major client, Company management is adjusting its fiscal 2011 guidance and expects revenue of between $101.5 million and $110.7 million. It expects Non-GAPP adjusted earnings to be in the range of $23.02 million to $24.80 million. The Company expects full year adjusted earnings per share of between $0.98 and $1.06. This guidance assumes total sales volume of 850,000-920,000 metric tons of CWSF in 2011.

Because of loss of certain customer accounts and cancelled orders from existing customers, the company is making efforts to diversify its customer base and provide a more stable source of revenues. As a result, management has increased the number of sales representatives and raised incentives for new accounts that enter into long-term purchasing agreements.

Management is reaffirming fiscal 2011 guidance and expects revenues of at least $170 million and net income of at least $38 million, representing an increase of approximately 60.0% and 35.7% compared to 2010 revenues and adjusted net income, respectively. The Company also reaffirmed full year EPS guidance of $1.43 to $1.57 based on 26.6 million fully diluted shares. This guidance assumes total sales volume of 1.4 million metric tons of CWSF in 2011.

Sino Clean Energy today announced that it has commenced legal action against Geoinvesting LLC, an individual calling himself "Alfred Little", the owners of the web site called Seeking Alpha, and unidentified persons acting with, for or through them. The suit seeks $55 million in compensatory damages and $10 million in punitive damages resulting from the defendants' fraud, defamation, and tortious interference with Sino Clean Energy's business relationships.

Baowen Ren, Chairman of Sino Clean Energy stated, "The malicious and fraudulent attacks on the Company by short sellers seeking only to enrich themselves at the expense of our Company and its stockholders must stop. Trying to correct their false and defamatory statements one by one apparently serves no purpose since these short sellers clearly do not care about the truth. We warned the short sellers that we would not tolerate their continued fraudulent attacks and if they do not stop we would pursue civil remedies and make appropriate complaints to law enforcement. We intend to do both."

The Company recently responded to the false and defamatory allegations made by short sellers, including the notorious so-called Alfred Little and Geoinvesting. As is common with these coordinated attacks, Sino Clean Energy noticed dramatically increased naked short selling activity in its common stock that coincided with the attacks by Alfred Little, publishing on SeekingAlpha and elsewhere, and by Geoinvesting. The Company believes that such persons and others, who have admitted that they have short positions in the Company's stock, are attempting to drive down Sino Clean Energy share price artificially for their own financial benefit. The Company believes that the short sellers seek to accomplish this goal by spreading fabricated market information and rumors. In addition to the very serious market manipulation in which the short sellers have engaged, serious questions have been raised about the identity, and even the existence, of the person (or persons) calling himself Alfred Little.

Sino Clean Energy is dedicated to protecting its stockholders and its interests. Accordingly, the Company is taking all necessary steps to bring an action against those who have spread false and misleading information to attack it and who seek to benefit themselves from the damage they inflict on the Company and its shareholders. The Company also will pursue all other avenues available to it, including filing complaints with government regulators and others.

Management is providing fiscal 2011 guidance and expects revenues of at least $170 million and net income of at least $38 million, representing an increase of approximately 60.0% and 35.7% compared to 2010 revenues and adjusted net income, respectively. This guidance assumes total sales volume of 1.4 million metric tons of CWSF in 2011.

Sino Clean Energy today announced that it has commenced construction on an additional 750,000 metric tons (MT) of annual production capacity to its existing 300,000 MT capacity plant in Dongguan, Guangdong Province. The Company expects to complete construction in August 2011. In order to meet the anticipated increase in demand from recently announced mandates and subsidies from the Dongguan government, Sino Clean Energy is building a new 750,000 MT CWSF production line at its existing production facility in Dongguan, bringing total capacity at the Dongguan facility to 1,050,000 metric tons, and a Company aggregate total of 1,900,000 metric tons. Total construction and equipment costs are expected to be approximately $13.6 million. Once construction is complete in August, the Company anticipates additional testing before ramping production in the fourth quarter of 2011. Management expects a payback period of approximately 2 years from this investment.

"We are pleased with the progress we have seen so far from our Dongguan facility," began Mr. Baowen Ren, Chairman of Sino Clean Energy. "After the 300,000 metric tons annual capacity coal water slurry fuel production line was successfully put into operation in Dongguan, Guangdong province this January, the yield and sales volumes have continued to increase rapidly. We have added new customers and overall demand has exceeded our expectations."

On March 2, 2011, senior management of the company was invited by the Dongguan Environmental Protection Bureau to attend the Clean Energy and CWSF Promotion Seminar. At this meeting, the Dongguan municipal government made several significant commitments to promote the use of CWSF. It mandated that all coal-fired boilers below 4 steam ton/hour and 10 steam ton/hour with using life over 8 years must be renovated or eliminated by the end of Dec. 31, 2012. Over 1,000 industrial boilers in Dongguan do not comply with these standards. To encourage the use of CWSF, the Dongguan municipal government will provide a subsidy of 40,000 RMB ($6,105) per steam ton, with a cap of 400,000 RMB ($61,059) per year.

The new 300,000 metric tons (MT) CWSF production facility expands the Company's total annual production capacity to 1,150,000 metric tons. Sino Clean Energy used a portion of the proceeds from its follow on public offering completed in December 2010 to fund this expansion. With strong support from the local government and a large base of industrial customers, Guangdong is the largest consumer of CWSF in China. Sino Clean Energy has signed supply agreements with 4 customers, including Yongchang Paper and Tongyi Group, to deliver a combined almost 200,000 MT of CWSF over the next twelve months.

"This is an exciting and important milestone for our company. Entering Guangdong, the largest province in China in terms of economic output and CWSF consumption, is a key component of our growth strategy. The Dongguan government is aggressively promoting the use of CWSF and plans to expand consumption to 7 million tons in the next 3 years. We believe that our early entry into this market positions us well to be a beneficiary of this growth."

"We are pleased with our strong growth and operating results for the third quarter of 2010, and expect growth to continue during the balance of 2010 due to our increased production capacity, growing demand for coal water slurry fuel in China, and improved market pricing. The CWSF market has continued to expand due to growing customer demand for clean and efficient sources of energy and the government's mandate for reduced emissions through improved utilization of coal. CWSF increases burning efficiency and reduces air pollution, coal consumption and coal material costs for end users while generating attractive gross profit margins for energy producers. As a result, we believe we are well-positioned to further drive incremental revenue and earnings growth and will continue to build upon being a leading producer of CWSF in China."

Management reaffirmed its fiscal 2010 guidance and expects revenues of at least $105 million and adjusted net income of at least $25 million, representing an increase of approximately 128.3% and 127.3% compared to 2009 revenues and adjusted net income, respectively. This guidance assumes total sales volume of 850,000 metric tons of CWSF in 2010. The Company expects to end 2010 with 1,150,000 metric tons of total CWSF production capacity.

"We plan to leverage our experience and technology advantages in CWSF and expand to other provinces in China. We have identified three new provinces, Guangdong, Guangxi and Nanning, with favorable competitive dynamics, rising demand and strong economic incentives from local governments, in which to expand. In addition, we plan to expand the production capacity at our current locations in Shenyang, Liaoning Province and Tongchuan, Shaanxi Province and. We expect that our growth initiatives will increase our aggregate annual CWSF production capacity to 1,850,000 metric tons by the first nine months of 2011."

For the year ending December 31, 2010, management reaffirmed guidance and expects revenues of at least $105 million and adjusted net income of at least $25 million, representing an increase of approximately 128.3% and 127.3% compared to 2009 revenues and adjusted net income, respectively. This guidance assumes total sales volume of 850,000 metric tons of CWSF in 2010. The Company expects to end 2010 with 1,150,000 metric tons of total CWSF production capacity.

"We plan to increase our CWSF production capacity through the construction of new facilities and the acquisition of existing CWSF production facilities in new geographic regions. We expect that such growth initiatives will increase our aggregate annual CWSF production capacity to 1,850,000 metric tons by the first half of 2011, which will drive revenues and earnings growth into the coming year."

Sino Clean Energy today announced that the Company received approval by Nasdaq's Listing Qualifications Department to list its common stock on The Nasdaq Global Market. The Company anticipates that its common stock will commence trading on The Nasdaq Global Market on June 14, 2010 under the ticker symbol "SCEI."

For the year ending December 31, 2010, management reaffirmed guidance and expects revenues of at least $105 million in revenues and adjusted net income of at least $25 million, representing an increase of approximately 128.3% and 127.3% compared to 2009 revenues and adjusted net income, respectively. This guidance assumes total sales volume of 850,000 metric tons of CWSF in 2010. The Company expects to end 2010 with 1,050,000 metric tons of total CWSF production capacity.

We believe that the reverse stock split of our Common Shares, along with other progress made by the Company, will move us closer to fulfilling the requirements for listing on a national securities exchange, which we believe will make our company more attractive to a broader audience of investors, including institutional investors.

For the year ending December 31, 2010, management increased guidance and now expects revenues of at least $105 million in revenues and adjusted net income of at least $25 million, representing an increase of approximately 128.3% and 127.3% compared to 2009 revenues and adjusted net income, respectively. This guidance assumes total sales volume of 850,000 metric tons of CWSF in 2010. The Company expects to end 2010 with 1,050,000 metric tons of total CWSF production capacity.